Top 5 Stocks to Short or Buy Puts This Week in US Market

In today’s investment landscape, identifying potential downside opportunities can be as lucrative as finding stocks poised for growth. As market dynamics shift and economic uncertainties loom, particularly with proposed tariff implementations on the horizon, certain stocks appear vulnerable to price corrections. This analysis identifies five U.S. stocks that present compelling opportunities for short selling or buying put options based on comprehensive research combining fundamental weaknesses, technical indicators, and negative sentiment signals.

Market Context: The Bull-Bear Tug-of-War

Before diving into specific stock recommendations, understanding the broader market sentiment provides crucial context. Currently, we’re witnessing a fascinating tug-of-war between bullish and bearish forces. The SPX put/call ratio sits at 1.17, down from 1.54 a year ago, suggesting a decrease in bearish sentiment but still indicating caution among investors. More tellingly, the CBOE Equity Put/Call Ratio stands at just 0.48, down from 0.65 a year ago—a potentially concerning sign of market overconfidence.

This market sentiment indicator deserves close attention. According to market analysis resources, when the 10-day average of the put/call ratio rises above 1.1, a market trough might appear, and when it falls below 0.8, a peak might appear. Generally, a put-call ratio below 0.7 is considered bullish, while a ratio above 1.0 is considered bearish. The current readings suggest we’re in a complex middle ground that warrants careful stock selection.

Several factors are currently influencing market dynamics:

1. Interest Rates: The Federal Reserve has maintained its forecast of two interest rate cuts this year but has also raised inflation expectations. This creates a complex environment where lower rates could boost economic activity, but higher inflation could dampen consumer spending and corporate earnings.
2. Economic Growth: While the labor market remains relatively healthy and manufacturing shows signs of improvement, economic growth is slowing from its previous pace. The Conference Board’s Leading Economic Index (LEI) has been trending downward, suggesting potential headwinds for corporate profits.
3. Tariffs and Trade: Perhaps most significantly for our analysis, uncertainty surrounding tariffs and trade policies looms large. President Trump’s proposed reciprocal tariffs on imported goods scheduled for April 2 have introduced considerable uncertainty. Market reactions have been volatile as reports suggest these tariffs may be less aggressive than initially feared, but the situation remains fluid.
4. Market Breadth: Recent market data suggests a rotation out of the “Magnificent Seven” tech stocks and into more defensive sectors like Utilities, Energy, and Consumer Staples—indicating a shift in investor sentiment toward a more risk-averse approach.

Our Top 5 Shorting Opportunities

After rigorous analysis of financial statements, technical indicators, and market sentiment, we’ve identified five stocks that present compelling opportunities for short selling or buying put options. Each recommendation includes a detailed rationale and strategic considerations.

1. Best Buy (BBY)

Key Factors:

• Year-to-date loss of more than 11% compared to the broader S&P 500
• CEO warnings about the impact of President Trump’s tariffs on Mexico and China
• Heavy dependence on these two countries as primary supply chain sources

Best Buy presents an intriguing shorting opportunity primarily due to its significant exposure to potential tariffs. As one of the largest electronics retailers in the United States, the company relies heavily on products manufactured in both Mexico and China—precisely the regions targeted by President Trump’s proposed tariff policies.

The company’s CEO has explicitly warned about these tariffs’ potential impact, a concerning signal for investors. Electronics retailers typically operate on thin margins, making it difficult to absorb increased costs without passing them on to consumers, which could dampen demand and hurt sales.

Technically, the stock has already underperformed the broader market with a double-digit percentage decline year-to-date, suggesting bearish momentum that could accelerate as tariff implementation dates approach. The combination of fundamental vulnerability to trade policies and negative price action makes Best Buy a prime candidate for a strategic short position or put option purchase.

2. Abercrombie & Fitch (ANF)

Key Factors:

• Share price has tumbled more than 35% in 2025 after stellar performance in 2023-2024
• Weak guidance for the fiscal year
• Sales growth expectations below analyst consensus

Abercrombie & Fitch presents a classic case of a company struggling to maintain momentum after a period of strong performance. Despite enjoying remarkable success in 2023 and 2024, ANF shares have plummeted more than 35% since the beginning of 2025—a dramatic reversal that signals serious concerns.

The primary catalyst for this decline appears to be disappointing forward guidance. The company has projected sales growth that falls significantly short of analyst consensus estimates, suggesting management sees challenges ahead that the market may not fully appreciate. This disconnect between company outlook and market expectations often precedes further price adjustments.

The retail sector faces multiple headwinds in the current economic environment, including potential consumer spending pullbacks amid inflation concerns and the looming impact of tariffs on imported goods, which could significantly affect apparel retailers like Abercrombie & Fitch that rely heavily on overseas manufacturing.

The technical picture reinforces the bearish outlook, with the stock showing clear downward momentum after breaking through several support levels. This combination of fundamental weakness and negative technical signals makes ANF a compelling candidate for shorting or put options.

3. Campbell Soup Company (CPB)

Key Factors:

• Shares tumbled more than 5% after posting weak revenue and guidance
• Full-year EPS guidance of $2.95-$3.05 (excluding items) versus consensus forecast of $3.13
• Established consumer staples company showing signs of weakening fundamentals

Campbell Soup Company might seem like an unusual shorting candidate given its status as a defensive consumer staples stock. However, recent developments suggest the company faces significant challenges that the market is just beginning to recognize.

The stock’s recent 5% decline followed disappointing quarterly results, with both revenue and forward guidance falling short of expectations. Most concerning is the company’s full-year earnings guidance, which at $2.95-$3.05 per share falls noticeably below the Wall Street consensus of $3.13. This earnings gap suggests potential structural issues affecting the company’s profitability.

As a consumer packaged goods company, Campbell faces mounting pressure from private label brands and changing consumer preferences. While the food sector is generally less volatile than other industries, the company’s underperformance relative to peers indicates company-specific issues rather than industry-wide challenges.

The combination of weak fundamentals, disappointing guidance, and evidence of declining market share makes Campbell Soup an interesting contrarian short opportunity in the consumer staples sector, which is typically viewed as a safe haven during market uncertainty.

4. CrowdStrike (CRWD)

Key Factors:

• 9% decline in after-hours trading following earnings forecast
• Full-year revenue guidance of $4.74-$4.81 billion, barely meeting consensus
• High valuation multiples creating vulnerability to even slight disappointments

CrowdStrike represents a potential shorting opportunity in the high-growth cybersecurity sector. Despite the company’s strong position in its market and growing demand for cybersecurity solutions, several factors make it vulnerable to a potential correction.

The stock’s 9% tumble in after-hours trading following its forecast release signals market disappointment, even though the company’s guidance technically matched consensus expectations. This reaction suggests investors had higher unspoken expectations not reflected in formal analyst forecasts, a common situation with premium-valued growth stocks.

CrowdStrike trades at elevated valuation multiples compared to both the broader market and many of its technology peers. This premium valuation creates significant downside risk if growth shows any signs of deceleration or if profit margins fail to expand as expected. The company’s guidance, which merely matched rather than exceeded consensus, may indicate growth is moderating.

Additionally, the cybersecurity sector has become increasingly competitive, with both established tech giants and innovative startups vying for market share. This competitive pressure could impact CrowdStrike’s ability to maintain its premium pricing and high growth rates.

The combination of high valuation, signs of potential growth moderation, and increasing competition makes CrowdStrike an attractive candidate for put options, particularly for investors with a higher risk tolerance.

5. AeroVironment (AVAV)

Key Factors:

• Weak earnings and guidance despite analyst optimism
• William Blair reiterated an outperform rating despite recent pullback
• Conflicting signals creating potential volatility

AeroVironment presents perhaps the most complex case among our recommendations. The defense contractor has reported weak earnings and provided disappointing guidance, which would typically make it a clear shorting candidate. However, respected analyst firm William Blair has maintained an outperform rating on the stock, suggesting they believe the recent pullback represents a buying opportunity.

This conflicting information creates an interesting dynamic. The fundamental weakness evident in recent results cannot be ignored, yet the positive analyst view suggests there may be longer-term factors not fully reflected in current numbers. This dichotomy makes AVAV a higher-risk shorting opportunity that requires careful monitoring.

The defense sector generally benefits from geopolitical tensions and increased military spending, which provides some underlying support for companies like AeroVironment. However, company-specific execution issues or contract delays can still create periods of underperformance even within a favorable sector environment.

For investors considering a short position or put options on AVAV, the key will be closely monitoring both company-specific news and broader defense sector trends. The contrasting signals make this a more speculative recommendation that may be suitable for those with higher risk tolerance and the ability to actively manage positions.

Strategic Considerations for Short Selling and Put Options

When implementing shorting strategies or buying put options on these stocks, consider the following strategic framework:

Strategy Element	Short Selling	Put Options
Capital Required	Higher (margin requirements)	Lower (premium only)
Maximum Risk	Unlimited (theoretically)	Limited to premium paid
Time Sensitivity	Not time-bound	Expires at specific date
Leverage	Lower	Higher
Assignment Risk	None	None (if buying puts)

For each of our recommended stocks, here’s a suggested approach based on their specific situations:

Best Buy (BBY): Given the uncertainty surrounding tariffs and the company’s significant supply chain exposure, consider buying put options with expirations that align with key tariff implementation dates. This approach provides defined risk while positioning for potential negative catalysts.

Abercrombie & Fitch (ANF): The established downtrend and significant year-to-date decline suggest direct short selling may be appropriate. Consider setting stop-loss orders 7-10% above entry points to manage risk in case of unexpected positive news.

Campbell Soup Company (CPB): The relatively low volatility of this consumer staples stock makes longer-dated put options an attractive strategy. Look for strikes slightly below current market price with 3-6 month expirations to allow time for the fundamental weaknesses to fully manifest in the stock price.

CrowdStrike (CRWD): The high volatility and premium valuation make this an ideal candidate for put options rather than direct shorting. Consider put spreads (buying a higher strike put while selling a lower strike put) to reduce the cost of entry while still maintaining exposure to potential downside.

AeroVironment (AVAV): The conflicting signals surrounding this stock suggest a more cautious approach. Small position sizes and close monitoring are essential. Consider using options strategies that benefit from increased volatility rather than purely directional bets.

Risk Management Is Paramount

A crucial reminder: these bearish strategies involve significant risks. Short positions face theoretically unlimited losses if stocks rise instead of fall. Put options can expire worthless if price movements don’t materialize within the option timeframe.

Implement these risk management practices:

1. Position sizing: Limit each position to a small percentage of your overall portfolio
2. Stop-loss orders: Determine exit points before entering positions
3. Diversification: Don’t concentrate shorts in a single sector
4. Timing: Be aware of upcoming earnings announcements or other catalysts
5. Hedge: Consider hedging short positions with select long positions or broad market exposure

Conclusion

The current market environment presents both opportunities and risks for investors willing to explore bearish strategies. The five stocks we’ve identified—Best Buy, Abercrombie & Fitch, Campbell Soup Company, CrowdStrike, and AeroVironment—show compelling combinations of fundamental weaknesses, negative technical patterns, and catalysts that could drive price declines.

However, successful execution requires discipline, careful monitoring, and adaptability as market conditions evolve. The proposed tariff implementation and resulting economic impacts create a complex backdrop that demands vigilance.

Before implementing any shorting strategy, conduct your own thorough due diligence and consider consulting with a qualified financial advisor to ensure alignment with your overall investment goals and risk tolerance. Remember that market conditions can change rapidly, and positions should be monitored closely.

Disclaimer: This analysis is based on information available as of March 25, 2025. The author and publisher are not providing personalized investment advice. Past performance is not indicative of future results. Short selling and options trading involve substantial risk of loss and are not suitable for all investors.